Reducing inequality creates a stronger economy

An OECD report finding New Zealand has one of the fast growing rates of income inequality shows “trickle down” economics has failed and that everyone is better off under a stronger economy, Labour Leader Andrew Little says.

“The Government should be embarrassed by this report. It shows New Zealand has the widest growth in the gap between the haves and the have-nots in the developed world.

“It demonstrates that growing inequality stunts economic growth. The only way to improve everyone’s lives is to raise incomes and improve education.

“This report also confirms Labour’s long-held view that measures to lift the bottom 40 per cent of earners are vital to close the growing gap.

“Change is needed now. Increasing the minimum wage would help and restoring fair collective bargaining rights would make a real difference.

“The National Government needs to stop clinging on to a failed ideology and grasp a new focus on giving everyone a fair go to ensure we are all better off,” Andrew Little says.